. The previous proposal was criticized because: 1) it did not include enough references to research on auditory discrimination from the speech and hearing science literature; 2) it did not cite established diagnostic tests or training programs for phonological awareness already available; 3) the experimental plan was judged to be unrealistic (too difficult). These points are addressed. The primary objective of this project is to demonstrate the feasibility of using microcomputers to assess and train phonological awareness skills in kindergarten-aged children. Because individual differences in phonological awareness among entering first grade students appear to contribute strongly to differences in the rate of acquisition of beginning reading skills, both of these products have direct application in reducing the incidence of reading failure in the elementary grades. The specific aims of Phase I are to: 1) develop a computerized adaptive test of phonological awareness and provide initial validation evidence for such a test; and 2) prepare prototypic training modules for computer-based training in phonological awareness, and provide formative evaluation data on these modules. This proposal is based on a research consensus concerning the importance of phonological awareness in attainment of early reading skills. Since there are presently no efficient assessment or training materials commercially available in this area, both of the products should have broad commercial possibilities.